resale price maintenance

resale price maintenance
Measures taken by manufacturers or distributors to control the resale prices of their products (i.e., the prices charged by businesses that resell them).

Such measures have been applied to a limited array of goods, including pharmaceuticals, books, photographic supplies, and liquor. Resale price maintenance first began to be employed in the 1880s, reflecting the success of brand promotion and the resulting increase in competition among retailers. It became especially common in the U.S. but declined after World War II. It is prohibited in some countries. The complexity of marketing channels in industrialized countries makes it increasingly difficult for manufacturers to establish and enforce a single price or even a minimum price for their goods. See also fair trade law.

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Universalium. 2010.

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  • Resale price maintenance — (RPM) is the practice whereby a manufacturer and its distributors agree that the latter will sell the former s product at certain prices (resale price maintenance), at or above a price floor (minimum resale price maintenance) or at or below a… …   Wikipedia

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  • resale price maintenance — The setting of a fixed minimum price on an article by the manufacturer (abbrev RPM) • • • Main Entry: ↑resale * * * resale price maintenance, Especially British. fair trade …   Useful english dictionary

  • resale price maintenance — n: a form of illegal price fixing in which a manufacturer compels different retailers to resell a product at the same price and thereby prevents competition Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • resale-price maintenance — ➔ maintenance …   Financial and business terms

  • Resale Price Maintenance Agreement — Resale Price Maintenance (RPM) Agreement USA An agreement between a supplier and its distributors that limits the prices the distributors can charge customers for the supplier s products. Types of RPM agreements include a: • Minimum RPM agreement …   Law dictionary

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  • resale price maintenance — An agreement between a manufacturer and retailer that the latter should not resell below a specified minimum price. Such schemes operate to prevent price competition between the various dealers handling a given manufacturer s product with the… …   Black's law dictionary

  • resale price maintenance — RPM Formerly, an agreement between a manufacturer, wholesaler, or retailer not to sell a specified product below a fixed price, usually one given by the manufacturer. The purpose was to ensure that all parties were allowed to make a reasonable… …   Big dictionary of business and management

  • resale price maintenance — /ˌri:seɪl praɪs ˌmeɪntənəns/ noun a system where the price for an item is fixed by the manufacturer and the retailer is not allowed to sell it at a lower price. Abbr RPM …   Marketing dictionary in english

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